How to Finance a Pool | Pool Financing Options 2026

Key Takeaways

Pool loans are not a distinct loan type; they are typically personal loans or home equity products used to finance pool installation.
Home equity loans and HELOCs generally have lower interest rates than personal loans, but require using your home as collateral.
Pool manufacturer financing can make the process easier, but promotional rates might end up costing more in the long run.

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There may be nothing better in the summer months than having a backyard pool. Unfortunately, installing an in-ground swimming pool costs over $50,000 on average, which leaves many homeowners wondering how to secure pool financing in the first place.

Don’t have enough cash for a pool? No problem. There are plenty of swimming pool financing options available. From home equity loans to personal loans, here are the best ways to finance a pool in 2026.

In this article (Skip to...)

What is a pool loan?
Pool financing options
How to choose pool financing
How to finance a pool
Average costs
FAQ

What is pool financing?

Pool financing refers to the various loan programs available to help homeowners turn their backyard dreams into reality. Whether you’re looking to install a new inground pool, upgrade your existing pool, or create a beautiful backyard oasis with landscaping, pool financing can provide the funds you need.

With a variety of loan offers and repayment terms, pool financing allows you to spread the cost of your project over time, making it more manageable and affordable.

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Top pool financing options

So, you’re ready to turn your backyard into a personal oasis. Before you start imagining pool parties and relaxing on floats, you’ll need to think about how to finance a pool. The good news? It’s easier than you might expect. From pool loans to swimming pool financing, there are many options to make your dream come true without overextending your budget.

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1. Home equity loans

A home equity loan is a second mortgage that provides a lump sum of cash, which you repay in fixed monthly installments. With a home equity loan for a pool, you can typically borrow up to 85% of your home’s value, minus what you owe on your mortgage. Loan terms range from 5 to 30 years, and interest rates generally start around 8%, depending on your credit and lender.

When to use a home equity loan for a pool: This pool financing option is ideal if you have enough equity to cover the full pool cost and want a fixed rate with predictable monthly payments.

Pros:

There is a fixed interest rate and predictable monthly payments.
The rates could potentially be lower than those of personal loans or credit cards.
Longer repayment terms (up to 30 years) can reduce monthly costs.
You can borrow a large sum, often up to 85% of your home equity.

Cons:

The process requires closing costs, which can add to upfront expenses.
A firm cost estimate is needed since you can only borrow once.
Your home will be used as collateral, so missed payments could result in foreclosure.
Because you receive the funds all at once, you need an accurate estimate of your pool installation costs before applying.

2. HELOC pool financing

A home equity line of credit (HELOC) is a revolving credit line secured by your home’s equity. Similar to a credit card, a HELOC allows you to borrow as needed. If approved, you can access enough credit to cover your pool financing costs and repay it on a drawn-out schedule.

When to use a HELOC for a pool: This option is ideal if you want flexible borrowing with a long draw period and only want to pay interest on what you use.

Pros:

Monthly payments are based only on the amount borrowed.
The draw period, usually 10 years, allows access to funds beyond the pool loan repayment.
Interest may be tax-deductible if used to finance pool installation or home improvement projects.
Faster loan process with minimal documentation, sometimes without an appraisal.

Cons:

Variable interest rates mean payments can fluctuate.
Creates a second mortgage, increasing total loan obligations.
Can make it harder to refinance your primary mortgage in the future.
Since it’s secured by your home, missed payments could result in foreclosure.

A HELOC offers flexibility but also carries risks, especially with fluctuating interest rates. Be sure to compare this method with other pool financing options to find the best financing for a pool that meets your needs.

3. Cash-out refinance to pay for a pool

A cash-out refinance replaces your current mortgage with a new one, often at a lower interest rate. If you have enough home equity, you can finance a pool by borrowing up to 80% of your home’s value and receiving the difference in cash. The funds can be used for almost any purpose, including financing for a pool, home improvement financing, or debt consolidation.

When to use a cash-out refinance for a pool: This option works best if you have substantial home equity and can secure a competitive rate while withdrawing enough cash to cover your pool installation.

Pros:

Borrow up to 80% of your home’s equity.
Adjust your loan term or switch to a fixed-rate mortgage.
Can remove mortgage insurance or a co-borrower from the loan.

Cons:

Requires a full mortgage approval process, income verification, and credit approval.
Closing costs range from 2% to 5% of the loan amount.
Raises your mortgage balance, which may lead to higher monthly payments.
Since it’s a secured loan, failure to repay could put your home at risk of foreclosure.

A cash-out refinance can be a smart way to secure financing for pools if you qualify for a lower mortgage rate and need a large lump sum.

4. Pool manufacturer financing

When it comes to financing a pool, working directly with pool manufacturers or authorized dealers can be an attractive option. Many pool manufacturers offer pool loans tailored to buyers’ needs. This specialized financing for pools may include competitive interest rates, flexible payment terms, or special promotions.

When to use pool manufacturer financing: This option works best if you want a loan for a pool with a simplified application process and manufacturer-backed incentives.

Pros:

Streamlined process where you arrange both the purchase and financing through the same provider.
Manufacturer-backed swimming pool financing may include deferred payments or lower initial interest rates.
Special incentives, such as discounts or promotional rates, may be available.

Cons:

Financing options may be limited to the manufacturer’s partners, restricting your ability to compare rates.
Promotional rates may lead to higher interest costs in the long run.
May not always offer the most competitive pool loan terms compared to banks or credit unions.

If you’re considering pool manufacturer financing, compare the terms carefully against other pool financing options to get the best deal.

5. Personal loans (pool loans)

If you prefer financing a pool without tapping into home equity, an unsecured personal loan may be a suitable option. Banks, credit unions, and online lenders—such as Lightstream, HFS, and Lyon Financial—offer personal loans often marketed as “pool loans.” Once approved, you’ll receive a lump sum to cover your inground pool financing.

When to use a personal loan for a pool: This option is ideal if you want a fast approval process and don’t want to use your home as collateral.

Pros:

Faster funding compared to a cash-out refinance, HELOC, or home equity loan for a pool.
The application process is simpler, with funds often available within days.
No risk of foreclosure since the loan is unsecured.

Cons:

Higher interest rates compared to home equity financing.
May result in higher overall borrowing costs.
Limited borrowing amounts compared to in-ground pool financing with home equity.

To find the best loan for a pool, always compare interest rates among multiple lenders to secure the most affordable pool financing option.

Alternative pool financing options

If you’re exploring how to get a loan for a pool but traditional options don’t fit your needs, there are alternative financing methods that may work better for your situation.

Credit cards: Suitable for smaller pool-related expenses, but high interest rates can lead to costly loan payments if not paid off quickly.
Peer-to-peer lending: Online lending platforms connect borrowers with private investors, sometimes offering competitive rates and flexible terms.
Home improvement loans: These unsecured loans are designed for renovation projects, including financing a pool, and may offer better rates than general personal loans.
FHA 203(k) loans: If you’re purchasing a fixer-upper and want to include a pool in your renovation plans, this government-backed loan allows you to bundle both the home purchase and upgrades into one mortgage—potentially reducing down payments.

How to choose the best pool financing option

Many traditional banks, credit unions, and online lenders offer swimming pool financing. Some homeowners use home equity to finance a pool, while others opt for a personal loan for easier approval.

Finding the best way to finance a pool involves comparing quotes from at least three lenders. When evaluating pool financing options, consider these key factors:

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Interest rates: The lower the interest rate, the less you’ll pay in interest charges over time. Compare multiple lenders to find the most competitive rate.
Fixed vs. variable rates: Fixed-rate loans offer predictable loan payments, while variable-rate loans may start lower but can fluctuate over time.
Secured vs. unsecured pool loans: Home equity loans and HELOCs require collateral but may offer lower rates. Personal loans don’t require collateral but often come with higher interest rates.
Fees: Some lenders charge origination fees, prepayment penalties, or late fees. Review all costs before signing.
Loan term: Longer terms mean lower monthly payments but higher overall interest costs. Choose a term that fits your budget.
Loan amount: Ensure the lender offers enough to cover your pool financing needs while staying within borrowing limits.
Collateral requirements: Some loans, like home equity loans for a pool, require collateral, while unsecured loans do not.
Credit score: A higher credit score can secure better terms and lower rates. Check your score before applying.
Customer service: Work with a lender known for transparency, fair terms, and responsive support. Read customer reviews before deciding.
Discounts: Some lenders offer relationship discounts or lower rates for autopay enrollment, reducing borrowing costs.

Before you shop for a pool finance loan, be sure to have a finalized pool estimate in hand. Make sure your estimate accounts for any additional decking or enclosure costs you may be considering for your new pool.

How to get pool financing

Financing a pool can be a straightforward process if you’re equipped with the right information and tools. Understanding how to finance a pool is key, whether it’s for leisure, home improvement, or to increase your property value. Follow these steps to manage the pool financing process smoothly.

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Step 1: Estimate your budget

Start your pool financing journey by estimating your budget. Use a loan calculator to figure out how much you can afford for this major remodel and pool installation. This estimation should include the initial construction and ongoing maintenance expenses.

Step 2: Credit check and prequalification

Check your credit score with the three major credit-reporting bureaus: Equifax, Experian, and TransUnion. You can pull free credit reports from all three once per calendar year at annualcreditreport.com. Generally speaking, high credit scores result in low interest rates, which can save quite a lot of money over the life of a loan.

In addition, understanding your credit score improves your loan prequalification process by identifying potential terms and interest rates. If there is room for improvement, think about what you can do to raise your score.

Step 3: Compare lenders and loan options

With your budget set and your credit standing in hand, it’s time to compare lenders and loan options. Weigh the pros and cons of home equity loans, personal loans, and pool company financing, focusing on interest rates and repayment terms.

Evaluate the loan terms, borrowing fees, and interest rates offered by different financial institutions. Seek options that might offer same-day prequalification or approval, which can expedite the pool financing process.

Step 4: Apply for pool financing

After selecting your preferred financing option, complete the loan application. This process may involve detailed financial disclosures, such as proof of income and employment history.

Some lenders may offer same-day loan application processing, making it quicker to move forward with your pool project.

Step 5: Close and grab a swimsuit

Following loan approval, carefully review the loan agreement before signing. With the financial details settled, you can initiate the construction of your pool.

As the project takes shape, prepare for the fun times ahead. Close your pool loan deal, and in the spirit of celebration, why not pick out a new swimsuit for those upcoming pool days?

How much does a pool cost?

Installing a swimming pool is a dream for many homeowners, especially those living in warmer climates.

But how much does it actually cost to install a pool? The answer depends on various factors, including the type of pool, size, materials, add-ons, and ongoing maintenance costs.

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Type of pool

Above-ground pool: These pools are generally more budget-friendly, with costs ranging from $1,000 to $5,000. The average cost for the pool kit and supplies is around $2,850, with kits starting as low as $750.
Below-ground pool (Inground Pools): Inground pools are a more luxurious option and come with a higher price tag. The average cost ranges from $50,000 to $60,000. including the pool’s shell, heavy equipment, excavation, water, backfill material, plumbing, and pool equipment.

Size and materials

The size and materials used for the pool can significantly impact the overall cost. An in-ground pool costs $50 to $125 per square foot, while an above-ground pool costs $10 to $15 per square foot. The choice of materials, such as concrete or vinyl, can also affect the price.

Add-ons and hot tubs

Additional features like diving boards, covers, waterfalls, and heating can add to the overall cost. While hot tubs are often considered separate from pools, they can also vary widely in price depending on size, features, and quality.

Maintenance costs

Ongoing maintenance is a key consideration when budgeting for a pool. Regular cleaning, professional maintenance, and potential repairs can add up over time. Some of the expenses include pool-cleaning equipment, water treatments, lighting, heating, and electricity for running the pumps.

table with the financial commitment involved.

FAQs about pool financing

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Pool financing can be a good option if you’re prepared for the costs and can comfortably manage the loan payments. A pool may increase your home’s value and provide entertainment, but financing adds interest and long-term costs. Before taking out a loan for a pool, compare interest rates, consider maintenance expenses, and ensure the investment aligns with your budget.

Some lenders, credit unions, and other financial institutions advertise swimming pool loans. However, pool loans are simply unsecured personal loans used to finance a swimming pool purchase. Personal loans have much higher interest rates than other types of financing.

A cash-out refinance might be the best way to finance a pool if you can also benefit from refinancing your mortgage. Refinance loans typically have the lowest rates compared to home equity loans and personal loans. If you prefer access to a line of credit, a HELOC is a better match. Consider a home equity loan if you want a fixed monthly payment and a fixed rate. And if you don’t own a home—or don’t want to use your home’s equity—you can finance a pool with an unsecured personal loan.

Credit requirements for pool financing vary depending on the lender and the type of loan you use. Minimum scores might range from 600 to 680. If you want to finance a pool using a home equity line of credit or home equity loan, you may need a credit score of 720 or higher. Some lenders have lower credit requirements, so it’s possible to get pool financing with a low score. However, a lower score means you’ll get a higher interest rate and pay more for your loan.

Getting pool financing is easier with good credit or excellent credit. Lenders will check your credit history before approving your application. If you have recent late payments or other derogatory information on your credit report, the bank may deny your application. Borrowers with a bad credit profile will find obtaining financing challenging.

Pool companies are not banks, so they don’t offer true in-house financing. Instead, some pool builders work with a network of outside banks and lenders to offer pool loans.

Generally speaking, you can use a home improvement loan to finance a pool. However, some types of loans limit the types of renovations financing can be used for. Check with your loan servicer for details about your specific loan.

Check your eligibility for pool financing

An in-ground pool is a big investment. So it’s important to choose the right financing option.

To secure a competitive interest pool loan, consider tapping into your home equity with one of the financing partners featured in this article. But regardless of whether or not you choose to finance a pool through your home equity, be sure to shop around for the best deal possible.

Offers vary by lender, and your rate can make a big difference.

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